New Report Shows Which Generations Are Most Rent-Burdened

The Pew Charitable Trusts report found that Baby Boomers and Generation Xers are the most rent-burdened generations in the U.S., spending more than 30 percent of their monthly income on rent.

In 2015, 50 percent of renters 65 and older were rent burdened, including 23 percent of renters who spent more than 50 percent of their monthly income on rent, labeled "severely rent-burdened." Erin Currier, director of Pew’s financial security and mobility project, says both black Americans and older Americans are "disproportionately likely" to be rent-burdened, and older Americans are also becoming one of the largest cohorts of renters, MarketWatch reports. Experts cite income growth lagging behind rent growth as the main driver behind rent burdens.

“Families are getting squeezed and have less control dealing with financial emergencies and income volatility,” said Currier. “We see that they have less savings and that contributes to a greater sense of financial precariousness.” In fact, the Pew report says, rent-burdened families “often have trouble meeting basic consumption needs” and “typically have little connection to the banking system and limit savings.” The median rent-burdened household had less than $10 in savings in 2015, says Pew.

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